Diamondback Energy Inc (FANG)vsTexas Pacific Land Trust (TPL)
FANG
Diamondback Energy Inc
$196.02
-0.53%
ENERGY · Cap: $55.59B
TPL
Texas Pacific Land Trust
$530.36
-0.92%
ENERGY · Cap: $22.73B
Smart Verdict
WallStSmart Research — data-driven comparison
Diamondback Energy Inc generates 1751% more annual revenue ($14.29B vs $772.39M). TPL leads profitability with a 61.7% profit margin vs 11.6%. TPL appears more attractively valued with a PEG of 7.33. TPL earns a higher WallStSmart Score of 63/100 (C+).
FANG
Hold45
out of 100
Grade: D+
TPL
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.4%
Fair Value
$130.64
Current Price
$196.02
$65.38 premium
Margin of Safety
+30.9%
Fair Value
$598.68
Current Price
$530.36
$68.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Every $100 of equity generates 39 in profit
Keeps 62 of every $100 in revenue as profit
Strong operational efficiency at 73.5%
Safe zone — low bankruptcy risk
17.0% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
ROE of 3.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Trading at 8.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.
Bull Case : TPL
The strongest argument for TPL centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 61.7% and operating margin at 73.5%. Revenue growth of 17.0% demonstrates continued momentum.
Bear Case : FANG
The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : TPL
The primary concerns for TPL are Price/Book, PEG Ratio, P/E Ratio. A P/E of 47.7x leaves little room for execution misses.
Key Dynamics to Monitor
FANG profiles as a declining stock while TPL is a growth play — different risk/reward profiles.
TPL carries more volatility with a beta of 0.95 — expect wider price swings.
TPL is growing revenue faster at 17.0% — sustainability is the question.
FANG generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
TPL scores higher overall (63/100 vs 45/100), backed by strong 61.7% margins and 17.0% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
Texas Pacific Land Trust
ENERGY · OIL & GAS E&P · USA
Texas Pacific Land Corporation is engaged in land and resource management, and water operations and services businesses. The company is headquartered in Dallas, Texas.
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